Money Raising 1: Start With What You Have
Most people delay promising investment ideas not because they lack vision, but because they believe funding must come first. In reality, many successful journeys in investing in African real estate begin long before external capital is involved.
How to manage real estate investing risks
Every opportunity comes with its elements of risks. Some come with high risks and others are low risk. The level of rewards is typically dependent on the level of risk. Real estate is generally classified as a low risk sector, but It does have its own share of potential risks. Understanding these risks will help you to reduce your exposure to them. Here are some risks associated with real estate All of these risks can be managed by acknowledging them understanding them and planning for them. How to manage these risks… Overall, the real estate sector is cyclical by nature. It has ups and downs. Experienced real estate investors have gone through three, four or even five cycles in their lifetime. The secret is that after each down cycle, there mostly comes up cycles that will exceed the previous peak. Hence overall, long term, the property will generally grow in value over time, making it a good investment
How your money can achieve two important goals
Whenever you buy into a property on the GrowMyHome website, there are two benefits. The first benefit is that you become the owner of an income-earning asset that will earn you a return on investment. The second benefit is that your money goes on to make a social impact. Here’s how that works. Profit GrowMyHome brings verified properties to your fingertips. We eliminate the risks and make it safe for you to invest in these properties. Your investments into these properties enable you to earn from the properties. When these properties are rented out, the rental proceeds are shared with you in proportion to your ownership level. For instance, if you own 100% of the property, you get 100% of the net rental income. If you own 5% of the property, you earn 5% of the rental income and so on. In addition, the properties gains value through upgrades and value appreciation and over time these upgrades add a lot of value to the property. A time comes when the property is sold for profit. You also get to earn very decent returns from this. Impact For each successful deal, you make profit and we at GrowMyHome also make our own share of profits. We use a portion of our profits to develop new houses. These houses will be rented or sold to buyers and tenants as affordable homes, making it possible for individuals and families to rent or own a decent roof over their heads. Furthermore, while we are developing these houses, we employ workers from the communities to carry out a wide range of roles, tasks and skills. Each house we build creates between 100 to 200 temporary jobs, and groups of houses create some permanent jobs too. Also, housing projects create income for suppliers of building materials and services. This too, helps families put food on their tables. The more houses we can build the more families we can support, and the more communities we can develop. That’s impact! So in essence your investments create returns for you, and enable the development of affordable Housing for our communities.
We are democratizing real estate!
However, democratizing real estate is not that different from politics. It refers to making real estate more accessible to everyone, making each person’s Shillings, Rand, Naira, or dollar count.
Three legs of financial wealth: Assets, cashflow and profit
Having a negative in any of the three above erodes financial wealth. A great way to build financial wealth is to always watch out to ensure that all three items are positive.
How recent bank failures impact my investments?
There has been a number of recent bank failures in the US and Europe. This begs the question – is my money safe in South Africa banks?
